Private mortgage accounting

[doug]

One way to do it semi automatically would be to set up your own mortgage. Loop 
the details to & from a cash account so i does not impact on anything, then 
the interest that is calculated could be moved over each month manually to 
the asset account (ie as Derek has said) 
  The mechanism of this is that your asset account will move equal & opposite 
to the mortgage account. (the mortgage account is not used in reports, or at 
tax time though.)

regards doug.

On Sun, 8 Feb 2004 07:14 am, Derek Atkins wrote:
> Marc Evans <Marc at SoftwareHackery.Com> writes:
> > Hello -
> >
> > A person that purchased a property from me owes me for a mortgage that I
> > wrote. I am uncertain what the best way is to manage this in gnucash. I
> > have the principal amount as an Asset. What I am uncertain about is what
> > is the best way to account for the interest? Should I just schedule a
> > monthly invoice, based on the balance due?
>
> The interest they pay to you is Income.  You can use a scheduled
> transaction or a monthly invoice.  Unfortunately the current SX code
> doesn't have the ability to deal with pre-paided loans, so you'll
> probably need to compute the interest by hand each month.
>
> > Thanks in advance - Marc
>
> -derek